Construction Quality Policy

Construction Quality Policy of Transneft

Transneft is the key element of the Russian energy sector, assuring its ultimate results. The Company defines as its main priority in construction the continual development of crude oil and petroleum products trunk pipeline transport with a consistently high quality, sustainability, and safety of newly built and revamped facilities.

In its operations, Transneft is guided by the following principles:

systematic integrated improvement of the trunk pipelines network, to provide for continual development of the oil production and refining industry and to meet Russia’s needs for requisite volumes of crude oil and petroleum products supplied to domestic and foreign markets;

focusing on the quality of executed works and construction services provided by Transneft, its subsidiaries, and contractors;

developing and implementing modern management practices, to raise the competitiveness and operational efficiency of Transneft in construction as per the requirements of interstate standard GOST ISO 9001:2011 “Quality Management Systems: Requirements” and the Russian national standard GOST R 55048-2012 “Quality Management Systems: Special Requirements for Using GOST R ISO 9001-2008 in Construction”;

meeting the requirements of the Russian law, international treaties and intergovernmental conventions of the Russian Federation, standards and rules in construction;

using and implementing advanced technologies in design and construction, to raise the quality, expedite the works, optimize the costs, and reduce the negative impact of industrial factors upon human health and environment, as well as improving the energy efficiency of construction;

public availability of relevant information about the Company’s efforts aimed at raising the quality of construction.

To uphold the said principles, the Company ensures and intends to ensure in the future at all stages of its operating activity:

implementation of a quality management system, maintaining and improving its performance as per the requirements of ISO standards;

higher quality of design & survey as well as construction & installation work by using new design and construction technologies, state-of-the-art materials;

routine work on cutting construction costs, unwarranted expenditures, and losses;

quality control at all stages of design & survey and construction work;

better motivation of employees at Transneft entities and subsidiaries, to raise labour efficiency and reach the goals of the Development, Technical Upgrading, and Revamping Programme for Transneft Trunk Pipeline Facilities;

reduction of the share of imported products as part of the Programme implementation;

raising the level of personnel’s professional skills at Transneft and its subsidiaries in design, construction, and quality management;

renewal of equipment, buildings, and structures, raising their reliability as well as the dependability of technological and utility networks of trunk pipeline facilities while maintaining the optimal throughput capacity of trunk pipelines;

proper conditions for developing the infrastructure of undeveloped regions where facilities of the trunk pipeline system are built, creating new jobs for residents of these regions;

R&D efforts aimed at the development and implementation of new design and construction technologies as well as up-to-date materials;

setting and constant reviewing of goals and objectives pertaining to the quality of construction in accordance with dynamic market requirements, developing a strategy for various levels of the planning, design, and construction management operations;

involvement in the development of national laws and other regulatory acts of the Russian Federation, aimed at raising the quality of design and construction of crude oil and petroleum products trunk pipeline transport facilities in Russia;

control over compliance with occupational, industrial, fire, electric, and environmental safety and sustainable nature management requirements in the course of construction and installation operations at Transneft facilities, including via the efforts of contractors and subcontractors;

Control over the implementation of the Development, Technical Upgrading, and Revamping Programme for Transneft Trunk Pipeline Facilities.

Transneft regards compliance with the above-mentioned provisions as key to ongoing development of trunk pipeline transport, diversification of crude oil and petroleum products flows, boosting new areas of oil production, and creating infrastructure in underdeveloped regions to contribute to sustainable development of the Russian Federation.

The construction quality policy applies to all business units and subsidiaries of Transneft. The provisions of this Policy are taken into account in business relations Transneft is building with its partners.